The Difference between Entrepreneur and Managers (With Table)

The Difference between Entrepreneur and Managers (With Table)

Reviewed by: Jayprakash Prajapati | Last updated on September, 24, 2023

Hi, an entrepreneur is a person who is motivated to fulfill a high requirement of achievement in innovative and creative activities. Their creative behavior and innovative spirit that make up an endless chain of the process are called entrepreneurship.

What is the difference between managers and entrepreneurs?

Creating the process is not enough for the entrepreneur, but an equally important task for him is to manage the business. He does a managerial function from an entrepreneurial point of view.

The entrepreneur enters a transitional state in which initially the transition from an entrepreneurial to management with innovation becomes a routine for him. It also emphasized insights and involvement with people through techniques and analytical methods.

The entrepreneur considers and exploits the opportunity, and the subsequent steps required for the organization are appropriate for management.

Entrepreneur differs from a professional manager Undertakes an undertaking for his personal satisfaction. As such it cannot remain within the framework of professional behavior set by others.

He can engage a professional manager to perform some of his tasks. Such as objectives, policies, procedures, rules, strategies, establishment of formal communication networks. However, entrepreneurial work of innovation, perception of business risk, and commitment to their vision cannot be delegated to the professional manager. For a professional executive, failure can mean little.

Probably more than locating a new job even at a higher salary, while the failure of an entrepreneur in his efforts would be a devastating loss to his career. The professional manager has to work within the framework of policy guidelines set by the entrepreneur.

This distinction between the entrepreneur and the professional (traditional) manager is presented in Table I.

Entrepreneur Vs Managers – Table

1.Primary MotivesWant promotion and traditional corporate rewards. Power-motivated.Wants freedom, goal-oriented Self-reliant, and self-motivated.
2.Time OrientationRespond to quotas and Budgets, weekly, monthly, quarterly, annual planning horizons, the next promotion or transfer. next step along the way.End goals of 5-10 year growth of business in view as guides. Takes action now to move the
3.ActionDelegate action. Supervising and reporting take most of the energy from their work.Gets hands dirty. May upset employees by suddenly doing
4.SkillsProfessional training. Often business school trained. Abstract analytical tools, people-management, and political skills. trained if in technical business.Knows business intimately. More business acumen than managerial or political skill. Often technically.
5.Courage and DestinySees others in charge of his or her destiny. Can be forceful and ambitious, but may be fearful of others’ ability in case of optimism.Self-confident, optimistic, courageous.
6.AttentionPrimly on events inside a corporation.Primarily on technology and market place.
7.Market ResearchHave market studies been done to discover needs and guide product conceptualization?Creates needs. Creates products that often can’t be tested with market research-potential customers who don’t yet understand them. Talks to customers and forms own opinions.
8.StatusCares about status symbols. if the job is getting done.Happy sitting on an orange crate
9.Failure and MistakesStrives to avoid mistakes and surprises. Postpones recognizing failure.Deals with mistakes and failures as learning experiences.
10.DecisionsAgrees with those in power. Delays decision until he gets a feel of what bosses to want.Follows a private vision. Decisive and action-oriented.
11.Who they ServePlease others.Pleases self and customers.
12.Attitude Toward the systemSees system as nurturing and protective, seeks position within it.May rapidly advance in a system, when frustrated; reject the system and form his or her own.
13.Problem-solving StyleWorks out problems within the system.Escapes problems in large and formal structures by leaving and starting over his own.
14.Family HistoryFamily members worked for large organizations.Entrepreneurial small-business, professional, or agricultural background.
15.RiskCarefulLike moderate risk. Invests heavily, but expects to succeed.

1. Role and Responsibility:

  • Entrepreneur: Entrepreneurs are the individuals who conceive, create, and establish new businesses or ventures. They are responsible for identifying opportunities, taking calculated risks, and turning innovative ideas into viable enterprises. Entrepreneurs often have a broader scope of responsibilities, including business development, strategy, and leadership.
  • Manager: Managers, on the other hand, are typically responsible for overseeing and executing the day-to-day operations of an existing business or organization. Their primary role is to plan, organize, and coordinate resources, tasks, and people to achieve established goals and objectives.

2. Ownership and Risk:

  • Entrepreneur: Entrepreneurs are usually the owners or co-owners of the business they establish. They bear a significant portion of the financial risk associated with starting and running a business. Entrepreneurs invest their own capital and often seek external funding to launch their ventures.
  • Manager: Managers are employees of the organization. They do not own the business but are hired to manage specific aspects of it. Managers do not typically have a direct financial stake in the company’s success or failure, apart from their salaries and performance-based incentives.

3. Innovation and Creativity:

  • Entrepreneur: Entrepreneurs are known for their innovative and creative thinking. They are driven by the desire to introduce new products, services, or business models to the market. Entrepreneurs constantly seek opportunities for disruption and growth.
  • Manager: While managers may be innovative in their own right, their primary focus is often on optimizing existing processes, ensuring efficiency, and implementing strategies that align with the organization’s established goals.

4. Decision-Making Autonomy:

  • Entrepreneur: Entrepreneurs have a high degree of decision-making autonomy, especially in the early stages of their ventures. They have the freedom to make critical business decisions, set the company’s direction, and adapt quickly to changing circumstances.
  • Manager: Managers operate within the framework set by the organization’s leadership or board of directors. They follow established policies and procedures, make decisions within their designated areas of responsibility, and report to higher levels of management.

5. Long-Term Vision:

  • Entrepreneur: Entrepreneurs are often driven by a long-term vision for their businesses. They aim to build and grow their enterprises over time, with the potential for substantial expansion, market dominance, or even eventual exit through an acquisition or public offering.
  • Manager: Managers typically focus on short- to mid-term goals, such as meeting quarterly targets or ensuring the day-to-day efficiency of operations. Their primary concern is the smooth functioning of the organization within the existing framework.

6. Risk Tolerance:

  • Entrepreneur: Entrepreneurs are inherently risk-tolerant. They are willing to take on significant financial and personal risks to pursue their business ideas and vision. Failure is seen as a learning experience and a potential stepping stone to future success.
  • Manager: While managers may make risk-related decisions in their roles, their level of personal risk is generally much lower. Managers are accountable for the outcomes of their decisions but do not carry the same level of financial or ownership risk as entrepreneurs.

In summary, entrepreneurs and managers play different roles in the business world. Entrepreneurs are visionary risk-takers who create and lead new ventures, while managers are operational leaders responsible for executing established strategies within existing organizations. Both roles are essential for the growth and success of businesses, and they often collaborate closely in various stages of a company’s development.

Recommended Resources on To further your research, check out my guide on How to Prepare Business and the best business ideas to try this year.

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